Challenges with efficiency metrics and possible solutions while using Lean methodology in service industry

Abstract

Purpose – This publication examines the use of Lean methodology in the service industry, with a specific focus on the challenges of developing and applying efficiency metrics. Processes in the service industry are intangible and fragmented, which creates limitations for measuring the improvements. This research offers a practical approach to developing efficiency measurements, quantification, and visualisation to demonstrate the value of the Lean methodology. Design and methodology: A systematic literature review was conducted using established databases to identify current research and methodological gaps related to Lean principles, efficiency, and quality measurement in services. Empirical validation was tentatively explored through pilot workshops with Lean practitioners in the financial services industry. Results – The research shows that there is no unified model or validated roadmap for quantifying Lean efficiency in the service industry. The study proposes the initial outline of such a framework, emphasizing collaboration between management, accounting, and Lean practitioners to align improvement reporting. Limitations of the research: The research is based on qualitative and pilot-project-level data, mostly from a financial sector organisation. In the future, it is suggested to expand it and to ensure greater empirical validation across other organisations in the service industry. Scientific and practical value: The publication opens and supports the discussion on the implementation of Lean methodology in the service industry, offering a structured approach to quantifying Lean effects.